Anyone looking for soul-stirring rhetoric and bold new initiatives didn't find them in Gov. Sonny Purdue's State of the State address last Wednesday night. What they got was a realistic assessment of the challenges facing Georgians, a practical approach to dealing with problems and a pledge to keep the state on sound financial footing.

Gov. Purdue reminded us once again that state revenues are not meeting projections and that the state, like individuals and families, must live within its means. He also vowed to reject any tax hike that might come out of the legislature.

The prospect of no new state taxes should have a calming effect on both individuals and businesses in the state, allowing them to make their financial plans with as good a guarantee as they can get there'll be no increase for taxes in their budgets.

That pledge from the governor could be the added incentive business and industry need to launch plans for expansion and to hire additional workers.

The firm, steady hand the governor has used in guiding state government through its current financial problems is an invaluable asset when it comes to assuring business prospects Georgia is a fiscally safe and conservative place to locate.

Unlike states like California that are experiencing a monetary crisis, Georgia has maintained a reputation for sound policies when it comes to taxing and spending. That translates into an excellent credit rating for the state, a positive condition that Gov. Purdue pointed to in his State of the State address. In perhaps the most daring proposal put forth in his speech, Purdue announced he plans to issue about $1 billion in low-interest bonds to pay for infrastructure improvements and to stimulate the economy. These bonds would not be an option if the state's credit rating were poor.

Using his State of the State speech as an opportunity to outline his budget proposals for 2004-2005, most of his remarks were devoted to monetary matters, and even those areas that could be classified as policy issues had major fiscal components attached.

The governor, for example, said he wants to move Georgia from the bottom of the ranks in SAT scores by including a minimum SAT score as a requirement for getting the HOPE scholarship. At the same time, the controversial proposal would ease some of the financial woes of the HOPE program by disqualifying thousands of applicants.

That issue will be hotly debated during the current session of the General Assembly, as will a proposal to amend the state constitution to allow religious groups to use state money for social programs.

Democrats are expected to fight the governor on both those issues, arguing the SAT link to the HOPE scholarship will hurt African Americans and students from rural areas, and that the constitutional amendment is a backdoor attempt to permit the use of vouchers for education, a move viewed by some as a threat to the public schools.

Education was a major component of the governor's speech Wednesday night. In spite of a shaky economy, Purdue insisted on a 2 percent raise for teachers (5 percent for more experienced teachers) and pledged more than $452 million in classroom construction.

The governor promised to accomplish all this without shutting down any state-funded hospitals or parks and recreation areas. There will be cutbacks in some operations, but after several years of unparalleled growth in personnel and spending, Georgia's state government is overdue for a little belt-tightening. In his State of the State address, Gov. Purdue has set the priorities and outlined his modest vision for state governance in the next fiscal year. It's a good plan that, like the governor himself, is simple and direct.